Mumbai, Sept. 25 -- As digital payments become an integral part of everyday life in India, the Reserve Bank of India (RBI) has taken a significant step to enhance the security of these transactions.

The RBI, in February 2024, had announced its intention to modernize the authentication mechanisms used across the country's payment ecosystem. This vision was formalized in the Reserve Bank of India (Authentication mechanisms for digital payment transactions) Directions, 2025, which will come into effect on April 1, 2026.

"All Payment System Providers and Payment System Participants, including banks and non-bank entities, shall ensure compliance with these directions by April 01, 2026, unless indicated otherwise for any specific provision he...